The present study evaluated the relationships between IT application and KM practice adoption, and project performance. KM practice adoption as a mediator in the relationship between IT application and project performance, was ascertained. A research model was constructed and validated utilizing structural equation modeling (SEM). Results of analyses demonstrated a positive relationship between IT application levels and knowledge management levels of projects. Also, high-level knowledge management contributes to project outcomes. Full mediation of KM practice adoption on the effects of IT application on project performance was affirmed.